Taxation Research Paper Example | Topics and Well Written Essays - 1500 words

Taxation - Research Paper Example When taxpayer agrees to extend the statute limitation to access income tax for a fixed period, they must sign the Standard IRS Form 872. Also, they can sign form 872-A for Special Consent to extend the access period up to 90 days after the earlier term of limitation upon assessment of income tax. The special consent form extends the statute of limitations on assessment until 90 days after the earliest of IRS mailing notice of terminating the extension; IRS sends a 90 day statutory notice of deficiency; or the taxpayer files the case Form 872-T to terminate Special Consent to extend the time to assess tax (CCH Editors 10,908) Form 870 is about Waiver of Restrictions on Assessment. It is used by Exam and does not prohibit from filing a claim for a tax refund in the future. By signing form 870 the taxpayer consents to waive certain legal restrictions on assessment, including the issuance of the 90-day letter and the right to petition the tax court (CCH 10,910). The form is used when the taxpayer and IRS have reached mutual agreement in the case, and it is effective when signed by the taxpayer and accepted by the IRS. Form 870-AD is about Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and Accept Over-assessment. The form is more final and binding between the parties. By signing this form the taxpayer consents to waive issuance on the 90-day letter and the right to petition the court. The form also limits the taxpayer from pursuing the refund claim with the respect to the taxes assessed. (CCH 10,911) Appeals Judicial Approach ad Culture (AJAC) refers to IRS Appeals Office policy for handling audit appeals. It is a program of returning appeals to a â€Å"quasi-judicial approach† in the way it handles cases and changing it away from a fact finding and raising new issues (CCH 10,909). Also, it enhances the perception that IRS Appeals Office is